Secondary Al Makers Suffered from Scrap Shortage Worldwide

Aluminium scrap supply is globally tightening. Secondary aluminium alloy makers in China, Middle East and Russia recently turn down orders from Japanese and offshore customers due to lack of aluminium scrap, according to Japanese trader source. Secondary aluminium makers cannot secure enough volume of scrap when scrap generation maintains stagnant worldwide along economy deterioration.

Chinese secondary aluminium makers rely on import from Europe and USA for more than 90% of aluminium scrap procurement. A concerned source indicated Chinese middle- and small-class alloy makers with monthly output at less than 5,000 tonnes are purchasing aluminium scrap mainly from traders. They are suffered from material shortage with weak procurement and finance powers.

Secondary aluminium makers in Middle East and Russia secure aluminium scrap mainly from domestic markets. However, scrap generation volume seems widely decreasing when plant operation stays stagnant mainly at automobile related sites. Japanese trader source said some of Middle Eastern alloy makers suspend offers for Japanese customers in mid July due to material shortage.